I found this article to be a good summarization of what happened today in the gold and silver markets.  Today was definitely a good start to what I described yesterday.

 

http://goldstocktrades.com/blog/2013/05/20/bullish-engulfing-pattern-in-gold-silver-and-the-miners-may-signal-near-term-bottom/

"Half science, half art, half luck," is how Brent Cook describes a geologist's work in distinguishing an anomaly from a deposit. But in his interview with The Gold Report, the publisher of...

One stock I would like to point out tonight is Nevsun.  I don't own any of this yet, but what I want to point out here is the relative strength this stock is currently displaying vs the other gold stocks.  Nevsun is at the same level it was back in Feb.  When the gold stocks do reverse trend, Nevsun will probably be the first one out of the gate to breakout.  Plus it currently pays a 3% dividend at current prices.

Just like I expected, the gold stocks are now testing out their lows.  I haven't seen any indication that this decline is overwith just yet.  If you are short I would continue to hold.  A breakout above the 112 area would indicate a reversal in the current trend.  I would like to see some wide price spread as well as more than just 1-2 days of an upmove to get me excited.  

Do I believe that the gold stocks are near a bottom?  Yes I do, but with that said, in a panic sell off things can go much farther than anyone would expect.  

Original write up below....